Unformatted text preview: TA SHAW, INC. (POPONG BERNARDO) a week after, upon arrival of Mr. Sosa from the Province (Marinduque) where the unit will be used on the 19th of June.
2. the downpayment of P100,000.00 will be paid by Mr. Sosa on June 15, 1989.
3. the TOYOTA SHAW, INC. LITE ACE yellow, will be pickup [sic] and released by TOYOTA SHAW, INC. on the 17th of June at 10 a.m.
Very truly yours,
(Sgd.) POPONG BERNARDO. that he was not dealing with Toyota but with Popong Bernardo and that the latter did not misrepresent that
he had the authority to sell any Toyota vehicle. He knew that Bernardo was only a sales representative
of Toyota and hence a mere agent of the latter. It was incumbent upon Sosa to act with ordinary
prudence and reasonable diligence to know the extent of Bernardo's authority as an agent in respect of contracts to sell Toyota's vehicles. A person dealing with an agent is put upon
inquiry and must discover upon his peril the authority of the agent.
At the most, the agremeent may be considered as part of the initial phase of the generation or negotiation
stage of a contract ofsale. There are three stages in the contract of sale, namely:
(a) preparation, conception, or generation, which is the period of negotiation and bargaining, ending at the
moment of agreement of the parties;
(b) perfection or birth of the contract, which is the moment when the parties come to agree on the terms of
the contract; and
(c) consummation or death, which is the fulfillment or performance of the terms agreed upon in the contract.
The second phase of the generation or negotiation stage in this case was the execution of the VSP. It must
be emphasized that thereunder, the downpayment of the purchase price was P53,148.00 while the balance 68 to be paid on installment should be financed by B.A. Finance Corporation. It is, of course, to be assumed
that B.A. Finance Corp. was acceptable to Toyota, otherwise it should not have mentioned B.A. Finance in
Financing companies are defined in Section 3(a) of R.A. No. 5980, as amended by...
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- Fall '14
- gutierrez hermanos, B.A. Finance Corporation